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Large companies are harming the cashflow of Britain’s independent businesses with overdue invoices.
New research shows that over half of the overdue invoices owed to small businesses are from significantly larger companies.
In total, £45 billion in overdue invoices is owed to small businesses. This equates to over £16,000 owed to each independent retail owner.
Almost 50 per cent of small businesses are waiting for three months before invoices are paid. Worryingly, 14 per cent were forced to wait six months for their payment.
The Federation of Small Businesses has previously called for the government to take action to address overdue invoices. They estimate that 50,000 independent businesses that folded in 2014 could have been saved if something had been done sooner.
The late-payment culture is UK specific, and tends to affect businesses in the North the most.
Overdue invoices can cause serious damage independent businesses. Late payments affect the entire supply chain of smaller companies, as they may struggle to pay their own supplier with the lack of available cash.
If you’re struggling to manage your cashflow due to overdue invoices, take a look at our simple tips to overcome late payments. We cover some easy methods of improving your payment process, to minimise the damaging effects late payment of invoices can have.